Deposit 5000 today in an account paying 12 per year How much

Deposit $5000 today in an account paying 12% per year. How much will you have in six years?

Solution

amount = deposit *(1+r)^n

here,

deposit = $5,000

r = 12% =>0.12

n = 6 years.

=> $5,000*(1.12)^6

=>$9,869.11.

we will have $9,869.11 in six years.